Q COSTA RICA — Costa Rica’s economy continues to grow, but at a significantly slower pace than that recorded a year ago. The Monthly Economic Activity Index (IMAE) showed a year-on-year change of 2.2% in August 2026—a slowdown of 3.4 percentage points compared to the same month in 2025, according to data released by the Central Bank of Costa Rica (BCCR).
The report reveals uneven performance across the country’s various productive sectors. While activities such as construction, commerce, and financial services maintained positive results, the manufacturing sector posted negative figures, and companies operating under special regimes experienced a marked loss of momentum.
According to the Central Bank, national production saw an average year-on-year growth of 3.4% through August, though the figure for the final month analyzed fell below that average.
The primary reason for this slowdown lies in the performance of the “special regimes”—a category that includes companies benefiting from specific incentives and unique operating conditions, such as those located in free trade zones (zonas francas).
These companies recorded a year-on-year growth rate of just 0.7%, a sharp decline compared to the significantly higher figures seen throughout 2025.
In contrast, companies under the “definitive regime”—which encompasses a large portion of productive activities geared toward the domestic market—grew by 3.2%.
This disparity highlights the contrast between the weakening of certain manufacturing activities linked to foreign trade and the greater dynamism seen in sectors such as construction, commerce, and domestic services.
Free trade zones and special regimes lose momentum
One of the most significant findings in the report concerns the performance of companies operating under “special regimes”.
Their output saw a year-on-year increase of just 0.7% in August—a slowdown of 15.3 percentage points compared to the same month in 2025.
According to the Central Bank, this trend is primarily driven by a decline in manufacturing activity, specifically in the production of medical supplies and electronic components.
Throughout 2025, the medical device industry experienced exceptional export growth, which created a high baseline for comparison against this year’s figures.
Compounding this was the cessation of operations by companies that manufactured electronic components and circuit boards; the impact of these closures began to show up in economic indicators as early as the final quarter of 2025.
As a result, the special regimes contributed only 4.7% to the total growth in national output recorded in August.